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Powell speech: Time to go to a meeting-by-meeting basis

FOMC Chairman Jerome Powell is commenting on the policy outlook following the Federal Reserve's decision to raise the policy rate by 75 basis points to the range of 2.25-2.5%.

Key quotes

"75 bps was right call in light of the data."

"But we wouldn't hesitate to make a larger move if appropriate."

"Very broad support for move at this meeting."

"Inflation has continued to disappoint."

"We've moved expeditiously to get to neutral."

"Our focus is going to continue to be on getting supply and demand in better balance."

"We will be looking at incoming data, including are we seeing a slowdown in economic activity we think we need."

"Some evidence we are seeing that now."

"We will be looking closely at inflation."

"Our mandate is for headline inflation, but we look at core as a better read."

"Will be asking if stance of policy is sufficiently restrictive to bring inflation back down to target."

"Likely full effect of rate increases has not been felt yet."

"Committee broadly feels we need to get to a moderately restrictive level."

"For September, will make decision based on data."

"Time to go to a meeting by meeting basis, not provide clear guide as before."

About Jerome Powell (via Federalreserve.gov)

"Jerome H. Powell first took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. He was reappointed to the office and sworn in for a second four-year term on May 23, 2022. Mr. Powell also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. Mr. Powell has served as a member of the Board of Governors since taking office on May 25, 2012, to fill an unexpired term. He was reappointed to the Board and sworn in on June 16, 2014, for a term ending January 31, 2028."

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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